Latest Insights in Stock Market Investing
BCI PODCAST 171: Rolling-Out to Impressive Profits
One of our frequently used covered call writing exit strategies is rolling-out, where we buy back the current short call and sell a later-dated short call. This podcast uses a real-life example with NVDA where multiple rolling trades were executed, both rolling-out...
Laddering Covered Call Strikes Based on Market Assessment and Risk Tolerance
click ↑ 4 Featured What strike should I select for my covered call trades? In-the-money (ITM), out-of-the-money (OTM), how far out, how far in? This apparent dilemma can easily be navigated by identifying our return goals, market assessment and personal risk...
Covered Call Strike Selection When Using the PCP or Wheel Strategy
click ↑ 4 Featured The PCP (Put-Call-Put) or Wheel Strategy is a multi-tiered option-selling strategy that combines selling cash-secured puts and covered call writing. In the BCI methodology, we (almost) always use out-of-the-money (OTM) put strikes, agreeing to buy...
BCI PODCAST 170: Analyzing the Cost-To-Close a Covered Call Trade Mid-Contract
After entering a covered call trade and share price rises significantly, leaving the original call strike DEEP in-the-money, what exit strategies opportunities should we consider? This podcast will cover rolling-up, rolling-out, rolling-out-and-up, closing both legs...
How to Setup a Technology Collar Trade
click ↑ 4 Featured The collar strategy is a covered call writing-like strategy where a protective put is added to the covered call trade. Typically, an OTM call represents a ceiling to the trade (maximum gain) and an OTM put represents a floor (maximum loss). In this...
Ask Alan #241: To close or not to close, that is the question
Hi Alan, I bought NEM at $98.68 and sold the $100 call and now it is trading at $113.70. I can't make any more money. I'm not sure if I should close the trade or let the shares be sold. I don't care about losing the stock. Any guidance is appreciated. Thanks, Barry...
Setting Up a $50k Covered Call Writing ETF Portfolio
click ↑ 4 Featured Covered call writing portfolios are structured based on cash available, the # of securities used to maximize diversification, as well as appropriate cash allocation and initial time-value return range goals. In this article, 5 exchange traded funds...
BCI PODCAST 169: Exit Strategy Considerations When a Call Strike Moves Deep ITM Early in a Contract
When share price moves up exponentially after entering a covered call trade, there are 4 exit strategies to consider: 1: Rolling-up 2: Rolling-out or out-and-up 3: Closing both legs of the covered call trade and entering a new one with a new stock (Mid-contract unwind...
Using 2 Standard Deviations to Determine the Risk of Exercise of a High Implied Volatility Stock When Covered Call Writing
click ↑ 4 Featured Portfolio overwriting (PO) is a form of covered call writing where, in addition to generating cash flow, we also want to retain the underlying shares. Achieving both goals may become more challenging when employing high implied volatility (IV)...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
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The Blue Collar Investor was founded with a simple mission: to empower everyday individuals with the knowledge to invest wisely in the stock market. Our blog focuses on demystifying stock options, providing readers with the tools they need to succeed. We believe that anyone can learn to invest effectively, regardless of their background or experience.
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